Funds management adds to CBA profits
Commonwealth Bank has again declared record dividends and posted strong full year results across all businesses, including funds management which saw a 28 per cent increase in net profit after tax on the back of just 12 per cent growth in funds under administration during the year.
In dollar terms, funds under management in the bank’s funds management operations grew to $123.1 billion while contributions to profit increased to $351 million from $274 million in the previous financial year.
Chief executive David Murray said profit growth in the Colonial First State dominated funds management businesses had been supported by productivity improvements.
The company reported the ratio of funds management expense to average funds under administration had fallen from 0.76 per cent at June 2004, to 0.70 per cent at the end of the 2005 financial year - an improvement of 7.9 per cent.
Murray also attributed the result to strong fund inflows, revenue growth, attractive customer offerings and flat expenses.
The company’s insurance business also contributed more this year, with profits expanding by 21 per cent from the previous reporting year to $156 million. Productivity in the business also improved by 1.7 per cent.
Overall, the bank reported a 55 per cent increase in after-tax profits from the previous year to $3,991 million, or a 31 per cent increase to $3,538 million if value uplift and goodwill amortisation were excluded, as they will be starting from next year when new accounting standards are introduced.
Recommended for you
In this week’s episode of Relative Return Insider, AMP chief economist Shane Oliver joins the show to discuss Australia’s stagnating productivity ahead of the government’s economic reform roundtable, and how picking all the “low-hanging fruit” for reform in the ’90s helped kick off a surge that has since stalled out.
In this episode of Relative Return Insider, host Keith Ford is joined by Cyber Daily deputy editor David Hollingworth to take you inside the evolving landscape of cyber crime, how even huge companies can be at risk of breaches, and what that means for anyone trying to understand the risks.
The latest episode of Relative Return sees host Laura Dew chat with Richard Ivers and Mike Younger, co-portfolio managers at Prime Value Asset Management, on their newly launched Microcap Fund and opportunities in small and mid-cap shares.
In this week’s episode of Relative Return Insider, hosts Maja Garaca Djurdjevic and Keith Ford dive into the week's top news, from investors remaining blasé about tariff announcements to bitcoin surging and unemployment numbers.
